ICICI Lombard General Insurance Buy Range:- Rs. 1300 Target:- Rs. 7000 by 2030. ICICI Lombard General Share Price.
In this article we will calculate future share prices of ICICI Lombard General Insurance and try to know what is the right time to invest in it.
ICICI Lombard General Share Price Today
| Year | Share price (Bear Case) | Share Price (Base Case) | Share Price (Bull Case) |
| 2022 | 1306 | 1469 | 2285 |
| 2023 | 1501 | 1689 | 2627 |
| 2024 | 1727 | 1942 | 3022 |
| 2025 | 1986 | 2234 | 3475 |
| 2026 | 2283 | 2569 | 3996 |
| 2027 | 2626 | 2954 | 4595 |
| 2028 | 3020 | 3397 | 5285 |
| 2029 | 3473 | 3907 | 6078 |
| 2030 | 3994 | 4493 | 6989 |
About ICICI Lombard General Insurance
- ICICI Lombard General Insurance Co. Ltd. is a leading general insurance company with a well-diversified range of products.
- It is in the business of car insurance, bike insurance, travel insurance, health insurance, and cyber insurance.
- It has shown a constant increase in Sales, Operating Profits, and Net Profits QoQ basis.
- Sales have grown from 2800Cr. In 2011 to more than 16000 Cr. in 2022 showing a five fold increase.
- Net Profits have gone up from -80 to 1600 Cr. in TTM.
- Company reserves have grown from 1500 Cr. to 9600 Cr. by Dec’22 an increase by six folds.
- Debt is negligible.
- Investments have grown by 10 folds whose interest can be seen under other income.
- Cashflow has always been positive.
- Promoter’s holdings have decreased from 56% to 48%.
- Overall share is in strong hands of FIIs and DIIs with public holding only being 11%.
Calculating ICICI Lombard General Share Price Target
For calculating the future share prices of ICICI Lombard we will assume the sales growth it will make, PAT margins, and PE with which it can trade.
Assumptions
Assumed Sales Growth
- General Insurance is a highly unpenetrated sector and hence a lot of growth is expected.
- Non Life insurance Premium Per Capita in the USA is 2500 USD while in India it is just 22 USD. Great scope for growth in this sector.
- ICICI Lombard has maintained a CAGR Sales of 16% since the past 10 years. Let’s assume 15% sales growth every year.
Profit After Tax Margin
- PAT Margins have been between 8-12% foe the past 5 years. So let’s take average as 10%
PE
- PE has always been between 32-73 with median PE of 47.
- The company mostly trades between PE of 37-60.
- Base Case – Let’s take median PE as base PE. PE base =45%
- Bear Case – Assuming PE = 40 in the bear case.
- Bull Case – Assuming PE = 70 in bull case.
Number of Shares
The company has 49.1 Cr. of shares.
Formulas’s used for Calculating ICICI Lombard General Share Price Target
- Projected Sales (Next Year)= Sales Current Year + X% of Sales Current Year, where X= Assumed Sales Growth.
Eg:- Projected Sales 2023 = Sales 2022 + 15 % Sales 2022.
- Projected Profit = Projected Sales X Profit After Tax Margin
- Market Capitalization = Projected Profit X PE
- Share Price = Market Capitalization / No. of Shares
- Historic data can be fetched from www.screener.com
Read More: Lux Industries Share Price Prediction
ICICI Lombard General Projected Sales and Net Profits
- Projected Sales can be calculated using formula:-
Projected Sales (Next Year)= Sales Current Year + X% of Sales Current
- Projected Net Profit can be calculated using formula:-
Projected Profit = Projected Sales X Profit After Tax Margin
| Year | Projected Sales ( In Cr.) | Projected Net Profit ( In Cr.) |
| 2022 | 16026 | 1603 |
| 2023 | 18430 | 1843 |
| 2024 | 21194 | 2119 |
| 2025 | 24374 | 2437 |
| 2026 | 28030 | 2803 |
| 2027 | 32234 | 3223 |
| 2028 | 37069 | 3707 |
| 2029 | 42629 | 4263 |
| 2030 | 49024 | 4902 |
ICICI Lombard General Share Price Target Base Case
- Market capitalization (Base Case) can be calculated as a product of Projected Net Profit and Base PE (45)
- Market Capitalization (Base Case) = Projected Profit X PE (Base case)
- Share Price (Base Case) = Market Capitalization (Base Case) / No. of Shares
| Year | PE (base case) | Mcap ( Base Case) ( In Cr.) | Share price (Base Case) |
| 2022 | 45 | 72117 | 1469 |
| 2023 | 45 | 82935 | 1689 |
| 2024 | 45 | 95375 | 1942 |
| 2025 | 45 | 109681 | 2234 |
| 2026 | 45 | 126133 | 2569 |
| 2027 | 45 | 145053 | 2954 |
| 2028 | 45 | 166811 | 3397 |
| 2029 | 45 | 191833 | 3907 |
| 2030 | 45 | 220608 | 4493 |
Read More:- IRCTC Share Price Target
ICICI Lombard General Share Price Target Bear Case
- When the market becomes pessimistic about a company’s growth, it gives it a lower PE.
- In this case financials remain the same but the share price of a company decreases.
- Market Capitalization (Bear Case) = Projected Profit X PE (Bear case)
- Share Price (Bear Case) = Market Capitalization (Bear Case) / No. of Shares
| Year | PE (Bear Case) | Mcap (Bear Case) ( In Cr.) | Share Price (Bear Case) |
| 2022 | 40 | 64104 | 1306 |
| 2023 | 40 | 73720 | 1501 |
| 2024 | 40 | 84778 | 1727 |
| 2025 | 40 | 97494 | 1986 |
| 2026 | 40 | 112118 | 2283 |
| 2027 | 40 | 128936 | 2626 |
| 2028 | 40 | 148276 | 3020 |
| 2029 | 40 | 170518 | 3473 |
| 2030 | 40 | 196096 | 3994 |
ICICI Lombard General Share Price Target Bull Case
- When the share market is bullish about the growth story of the company it gives it a higher PE and the share prices of the company rises.
- Market Capitalization (Bull Case) = Projected Profit X PE (Bull case)
- Share Price (Bull Case) = Market Capitalization (Bull Case) / No. of Shares
| Year | PE (Bull Case) | Mcap (Bull Case) ( In Cr.) | Share Price (Bull Case) |
| 2022 | 70 | 112182 | 2285 |
| 2023 | 70 | 129009 | 2627 |
| 2024 | 70 | 148361 | 3022 |
| 2025 | 70 | 170615 | 3475 |
| 2026 | 70 | 196207 | 3996 |
| 2027 | 70 | 225638 | 4595 |
| 2028 | 70 | 259484 | 5285 |
| 2029 | 70 | 298406 | 6078 |
| 2030 | 70 | 343167 | 6989 |
ICICI Lombard General Share Price Target 2023
| Year | Share price (Bear Case) | Share Price (Base Case) | Share Price (Bull Case) |
| 2023 | 1501 | 1689 | 2627 |
ICICI Lombard General Share Price Target 2024
| Year | Share price (Bear Case) | Share Price (Base Case) | Share Price (Bull Case) |
| 2024 | 1727 | 1942 | 3022 |
ICICI Lombard General Share Price Target 2025
| Year | Share price (Bear Case) | Share Price (Base Case) | Share Price (Bull Case) |
| 2025 | 1986 | 2234 | 3475 |
Read: Tata Elxsi Share Price Target
ICICI Lombard General Share Price Target 2030
| Year | Share price (Bear Case) | Share Price (Base Case) | Share Price (Bull Case) |
| 2030 | 3994 | 4493 | 6989 |
Read:- Nippon India Share Price Target
Conclusion
- ICICI Lombard is s company with solid financials so it can be worth investing at dips.
- It has a lot of growth potential, so the company will show steady sales growth.
- Sales growth may increase in the future with awareness.
- ICICI Lombard has posted the highest-ever sales and the highest-ever Net Profits QoQ and YOY basis in Dec ‘22.
- Currently it is trading at 35% down from its life time high.
- The share of ICICI Lombard General is trading below 200 DMA, 50 DMA, 20 DMA.
- It is trading at levels of 1050 which is lower that our expectations.
- It seems a good point to buy this share.
- Short-term traders can buy this share and keep it till lifetime high which is around 1670.
- Long- term investors can also invest in it as it is a growth stock.
FAQ
What is the price to buy ICICI Lombard share?
ICICI Lombard is trading at a strong support of Rs. 1073. It is good price to buy it at levels near 1200.
What is the target of ICICI Lombard General Insurance share?
ICICI Lombard can be bought for target of life time high of 1670.
What is the target price of ICICI Lombard in 2030?
Target Price of ICICI Lombard in 2030 is Rs. 6989.
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Disclaimer- All investments and trading in the stock market involve risk. Any decision to place a trade in the financial markets, including trading in stock should only be made after thorough research. Trading strategies or related information mentioned in the article is for informational purposes only. Use your due diligence before investing. These are just predictions. They may or may not be true. We are not SEBI-registered analysts.
